Question 1

Q1: Mark the following statements as true or false. (i) Statistics can only deal with quantitative data. (ii) Statistics solves economic problems. (iii) S...

Accepted Answer

(i) False. The chapter states that in addition to quantitative data, Economics also uses qualitative data. Qualitative data describes attributes of a person or group, such as gender or skill level (unskilled, skilled, highly skilled), which cannot always be measured in numbers but are important for...

Question 2

Q2: Make a list of activities in a bus stand or a market place. How many of them are economic activities?

Accepted Answer

Activities at a market place include:    A shopkeeper selling groceries.    A customer buying vegetables.    A porter carrying goods for a wage.    A security guard on duty.    People bargaining over prices.    A vendor selling street food.    A person just window-shopping.    Children playing. Econ...

Question 3

Q3: 'The Government and policy makers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples.

Accepted Answer

The statement is correct. Government and policymakers rely heavily on statistical data to understand the scale of economic problems and formulate effective policies. Two examples based on the chapter are: 1.  Poverty Alleviation Policies: To address the problem of poverty, the government first needs...

Question 4

Q4: "You have unlimited wants and limited resources to satisfy them." Explain this statement by giving two examples.

Accepted Answer

This statement is the basic teaching of Economics, highlighting the fundamental problem of scarcity. It means that human desires for goods and services are endless, but the resources (like money, time, and raw materials) available to fulfill these desires are finite. Example 1: A Student's Pocket Mo...

Question 5

Q5: How will you choose the wants to be satisfied?

Accepted Answer

When faced with limited resources and unlimited wants, the choice of which wants to satisfy is based on priority and intensity. I will have to rank my wants in order of their importance or urgency. 1.  Identify and Prioritize: First, I would list all my wants. Then, I would arrange them in order of...

Question 6

Q6: What are your reasons for studying Economics?

Accepted Answer

Based on the introductory chapter, there are several key reasons for studying Economics: 1.  To Understand Ordinary Life: Economics is the “study of man in the ordinary business of life.” It helps us understand everyday economic activities like consumption (how and why we buy things), production (ho...

Question 7

Q7: Statistical methods are no substitute for common sense. Comment with examples from your daily life.

Accepted Answer

The statement “Statistical methods are no substitute for common sense” means that while statistics provide valuable data and analysis, the interpretation and application of these results require practical judgment and a real-world understanding. Relying solely on statistical figures without consider...

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